The Climate Corporation Sells Crop Insurance Business to Amtrust Financial Services Inc.
SAN FRANCISCO (July 31, 2015) – The Climate Corporation, a division of Monsanto Company (NYSE: MON), announced today the sale of The Climate Corporation's crop insurance business (CCCIB) to AmTrust North America, a subsidiary of AmTrust Financial Services, Inc. (Nasdaq: AFSI). The agreement also provides AmTrust exclusive access to certain technologies of The Climate Corporation that can be applied in the crop insurance industry for up to three years. The Climate Corporation and AmTrust, along with CCCIB's carrier, OneBeacon Insurance Group (NYSE: OB), are working together to achieve a smooth transition for CCCIB's customers.
"CCCIB is a great addition to AmTrust," said AmTrust Financial Services, Inc. President and CEO, Barry Zyskind. "CCCIB's market knowledge, industry expertise and relationships provide an excellent platform for AmTrust to continue to expand in an insurance market niche that offers diversity of risks while also growing our service and fee revenue. We look forward to welcoming the CCCIB employees that will contribute to AmTrust's future success in the crop insurance market."
"While we're very pleased with the performance of our crop insurance business, the sale of CCCIB will enable us to focus exclusively on our digital agriculture platform," said Mike Stern, President and Chief Operating Officer for The Climate Corporation. "We believe digital agriculture has significant potential to help farmers make key agronomic decisions that can improve the efficiency and productivity of their operations."
OneBeacon President and CEO Mike Miller, said "We are committed to ensuring a smooth transfer for both our policyholders and for the CCCIB team. We have terminated our relationship with The Climate Corporation and have withdrawn our Plan of Operations with the U.S. Department of Agriculture's Risk Management Agency for the 2016 crop year."
Additional details of the agreement were not disclosed.
About The Climate Corporation
The Climate Corporation, a division of Monsanto Company, aims to help farmers around the world protect and improve their farming operations with uniquely powerful software and hardware. The company's proprietary Climate Technology Platform combines hyper-local weather monitoring, agronomic modeling, and high-resolution weather simulations to deliver Climate Basic™ and Climate Pro™, online and mobile SaaS solutions that help farmers improve profitability by making better informed operating and financing decisions. The company's unique technologies help the global agriculture industry to stabilize and improve profits and, ultimately, help feed the world. For more information, please visit www.climate.com or follow the company on Twitter @climatecorp.
About AmTrust Financial Services, Inc.
AmTrust Financial Services, Inc., a multinational insurance holding company headquartered in New York City, offers specialty property and casualty insurance products, including workers' compensation, commercial automobile, general liability and extended service and warranty coverage through its primary insurance subsidiaries rated "A" (Excellent) by A. M. Best.
About OneBeacon Insurance Group
OneBeacon Insurance Group, Ltd. is a Bermuda-domiciled holding company that is publicly traded on the New York Stock Exchange under the symbol "OB." OneBeacon's underwriting companies offer a range of specialty insurance products sold through independent agencies, regional and national brokers, wholesalers and managing general agencies. Each business is managed by an experienced team of specialty insurance professionals focused on a specific customer group or industry segment, and providing distinct products and tailored coverages and services. OneBeacon's solutions target group accident; commercial surety; design professionals; entertainment; environmental; excess property; financial services; healthcare; management liability; ocean and inland marine; programs; public entities; technology; and tuition refund. For further information about our products and services visit: www.onebeacon.com and to remain up to date on OneBeacon's news, follow us on Twitter @OneBeaconIns or visit our online newsroom: www.onebeacon.com/newsroom.